Week in Review

What’s unique about Windsor, Ontario? The city across the river from Detroit? It’s the only place you can drive south from the United States to get to Canada. So it’s about as far south you can get in Canada. But it’s no Florida. No. They have cold winters in Windsor. They also have snow. And clouds. So it’s probably not the best place to build a solar farm. Any rational person would see this. So guess what the government in southern Ontario is doing? Building a solar farm (see Airport land leased for Samsung solar farm by Chris Vander Doelen posted 3/19/2014 on The Windsor Star).

A “major” developer of solar power will lease hundreds of acres at Windsor Airport for a green energy farm, city council has agreed after years of negotiations with the company…

He said the company picked Windsor as the site for its investment because “we have more sun days than any other jurisdiction in Ontario.” That clearly suggests a solar farm, but Francis wouldn’t confirm that…

The agreement approved Wednesday – the meeting was closed to the public for legal reasons, Francis said – is believed to be the final, long-delayed piece of a massive deal the Province of Ontario and Samsung announced in January 2010.

That’s when former premier Dalton McGuinty announced that the province had signed a $7-billion agreement to produce renewable power with the Korean industrial giant – a contract that became so controversial parts of it were later renegotiated…

But the deal also became controversial as the costs starting driving up residential and industrial power bills, all of which will be affected by the renewable energy plan.

The controversy eventually led to reductions in some of the feed-in tariffs paid to producers of solar and wind power, which likely added to the delays of the solar farm not announced until this week. It also led to the renegotiation of additional incentives for Samsung, which were reduced to $110 million over 20 years…

Installation of the panels would generate many years of employment for an undetermined number of labourers and IBEW electricians. But once built there wouldn’t be much employment generated by the static field of passive solar collectors.

The solar farms were to be part of something called the Ontario Alternative Energy Cluster, claimed by Samsung to be “the largest of its kind in the world” at 1,369 megawatts of output.

They may have more sun days in Windsor than any place else in Canada. But Canada is a northern country. Even Windsor is in a northern clime. And they just don’t get as much sun as they do in more southern climes (see The Climate and Weather of Windsor, Ontario). In the sunniest month they have 9.5 average hours of sun per day. Which means they have 14.5 (24-9.5) average hours of no sun per day. And during these hours of ‘no sun’ a solar farm will not produce electric power. Which means on average this solar farm will produce no electric power for half of the day.

And it gets worse. The average hours of sun per day declines going into winter. October (5.5 hours of sun and 18.5 hours of no sun). November (4.1 hours of sun and 19.9 hours of no sun). December (2.6 hours of sun and 21.4 hours of no sun). January (3.4 hours of sun and 20.6 hours of no sun). February (4.4 hours of sun and 19.6 hours of no sun). March (5.4 hours of sun and 18.6 hours of no sun). So, on average, there are 5 hours of no sun for every hour of sun for half of the year. So you can install solar panels that could produce 1,369 megawatts of output. But they seldom will. So you will need another power source to provide electric power when the solar panels don’t. Which means a solar farm can’t replace something like a coal-fired power plant. For that coal-fired power plant will have to on average provide power 82% of the time. Which is why building a solar farm is a real bad idea.

And it gets even worse. December has 10 days of snowfall on average. January has 12. And February has 9. Just under half the days in the winter months will have snow which will have to melt off when the sun comes out from behind the clouds. If it comes out. Or someone will have to clear the snow from the solar panels by hand.

Windsor also has some other climate statistics (see National Climate Data and Information Archive). They have the most thunderstorm days. So they have more high winds, hail and tornados to damage delicate solar panels pointed skyward than any other part of Canada. And more black overcast days to block out the sun. They have the most smoke and haze days to filter out some of the sun from hitting the solar panels. They have the most humid summer which will coat the solar panels with early morning dew that will run down and drain off in blackened streaks. Reducing the efficiency of the solar panels.

This is why no one is building solar farms without taxpayer subsidies. Which raises the cost of electric utility bills to pay for the subsidies. Eating into household budgets forcing families to get by on less. And for what? You can’t shut down a coal-fired power plant during the day and turn it back on at night. It takes time to make high pressure steam. That’s why they use these plants for baseload power. They’re on all the time. And when demand picks up they add a natural gas-fired turbine ‘peaker plant’ to provide that peak demand. Or some other source that they can bring on line quickly. Like another turbine at a hydroelectric dam. So the good people of Ontario will pay more for their electric power without getting anything in return. Not even a cleaner environment. Because you just can’t replace a coal-fired power plant with a solar farm.

Week in Review

Green energy investments are a horrible investment. The only reason why anyone is building green energy projects is because of taxpayer subsidies. If you take away the subsidies the green energy industry is just going to stop building these bad energy projects. Which is what’s happening now (see Here Are The 10 Best States For Clean Energy Jobs In 2013 by Aaron Tilley posted 3/12/2014 on Forbes).

Clean energy investments had it rough in 2013, and US job growth in that sector is having a bit of trouble too.

That’s at least according to evidence in a new report out today from Environmental Entrepreneurs (E2),an environmental advocacy organization for businesses. While the clean energy industry made plans to add an additional 78,000 new jobs at 260 projects in 2013, that’s a 30% dip from the 110,000 job announcements in the previous year. (E2 has only been tracking clean energy job growth for the past two years…)

The biggest reason for the 30% drop in job growth over last year is due to ongoing regulatory uncertainty around federal tax credits and state renewable energy mandates, says E2 communications director Bob Keefe. Congress let the generous tax credits the wind energy industry had enjoyed for more than two decades expire in December–and it looks unlikely they’ll be reinstated in 2014. And four major energy efficiency tax credits and initiatives expired at the end of last year too. On top of that, several states, including North Carolina and Kansas, have attempted to roll back mandates on renewable energy requirements for their utility grids.

If anyone bemoans a cut in government spending in some government program don’t blame the Republicans. Blame the Democrats. And their green energy cronies. The Democrats are taking money away from other programs to pay for these white elephants just so they and their crony friends can get rich.

These projects cost a fortune to build. And the return on investment just isn’t there. Which is why it takes hundreds of millions in taxpayer subsidies to build them. That’s a lot of money to spend when these projects accomplish nothing. They don’t allow us to shut down one coal-fired power plant. Because we’ll need those coal-fired power plants to provide electric power when the sun doesn’t shine and when the wind doesn’t blow. And they take up so much real estate that they’re displacing wildlife from their natural habitat. While wind farms are hacking American Bald Eagles and other birds to death. So they’re not helping the environment.

And they’re not improving the reliability of our electric power. Or lowering the cost. Every time they shut down a coal-fired power plant they increase our electric bills. And increase the brownouts and blackouts we have to endure when we have to rely on less reliable power that costs more (we have to pay more for our electric power to pay for those subsidies) than the more reliable power. This is our government when Democrats are in power. And just imagine how they will run our health care. Who do you think they’ll make rich? And how much will they increase our health care costs? While giving us an inferior health care system? It’s going to happen. Because that’s what happens when Democrats are in power.

The Porsche Panamera S is quite a car. Sleek, powerful and aerodynamic, it’s capable of 167mph.

But that’s not all. The version on display here in Geneva is also able to travel for about 20 miles on nothing but battery power.

It is, of course, a hybrid. It has an electric motor sitting alongside a 3-litre petrol engine. It is fast, powerful and remarkably economical. Porsche claims it can drive for 91 miles on a single gallon of petrol.

Wow. A whole 20 miles on battery. A Ford Taurus with a full tank of gas will take you 522 miles on the expressway. With heat or air conditioning. In snow or rain. Night or day. That’s what the internal combustion engine gives you. The ability to get into your car and drive. Whenever. Without worrying if you have enough charge in the battery. Or whether you can risk running the heat or use the headlights when you’re running low on charge. All you need is gasoline. And when you’re low on gasoline you just have to spend about 10 minutes or so at a convenient gas station to refill your tank. Something no battery can do. For the fastest chargers (i.e., the highest voltage chargers) still require more than a half hour for a useful charge.

Now, under pressure from regulators around the world, carmakers have been working hard to reduce emissions and fuel consumption. So hybrids have become decidedly mainstream…

“There’s no doubt in our mind that it’s coming and it’s coming quickly and there is legislation supporting this in many cities.

“You can drive into London and pay zero congestion charge, for example. There are taxation incentives in the UK, but also in the US and Asia as well…

“We know our customers now,” he says, “and we remain totally convinced that electric cars have a strong, strong place in the market…”

Yet although sales of electric vehicles are growing rapidly, they remain a tiny fraction of the global total. For the moment, the internal combustion engine remains king.

The only thing causing electric cars to become mainstream is the coercion of government. Legislation. The only way you can make an electric car more attractive than a gasoline-powered car. Also, just to get people to buy electric cars requires massive government subsidies. No. Hamburgers, fries and Coke are mainstream. Because you don’t have to subsidize them or coerce people to buy them. In fact they are so mainstream that some in government use legislation to try and stop people from buying them.

The internal combustion engine is king and will remain king until you can drive an electric car as carefree as a gasoline-powered car. Until the electric car makers can give us the range and the ability to use our heaters and lights without sweating profusely as we sit in gridlock during a blizzard worrying whether we’ll ever make it home people just aren’t going to buy an electric car. Because people want to know they will make it home safely. And right now nothing does that better than the internal combustion engine.

Week in Review

Politicians everywhere want to build high-speed rail. Why? Because there are maybe only 2 high-speed rail lines in the world that operate at a profit. All other passenger rail requires government subsidies. Because the massive capital and operating costs for passenger rail are so great they cannot recover them via ticket prices. And high-speed rail is the costliest of all.

So passenger rail requires new taxation to support it. And politicians like new taxes. Also, building passenger rail requires an enormous infrastructure. Built and maintained by lots of people. Union people. Something else politicians love. Rewarding their union friends with lots of new union jobs. Which is why politicians love high-speed rail. They get a lot ‘thank you’ votes for all that government spending. No matter how costly or inefficient passenger rail is as a means of transportation. As we can see here (see I Spent 28 Hours on a Bus. I Loved It. by Eric Holthaus posted 2/4/2014 on Slate).

The infrastructure between point A and point B for cars and buses is already there. Paid for with fuel taxes. Planes need no infrastructure between point A and point B. But trains do. A very costly infrastructure.

Trains carry more people than buses. But not as many as planes. Which means the far greater cost of passenger rail is divided by fewer ticket purchasers. Whereas the less costly flying is divided by more ticket purchasers.

Planes can fly around 500 mph. Passenger rail can travel up to 100 mph on some sections of track. While high-speed rail travels at speeds of just under 200 mph on dedicated (and very expensive) track.

You add these points together and it’s little wonder that traveling by train costs about 20% more than flying. While taking 5.8 times as long. Or a little less for high-speed rail. Making the plane the undisputed champion of long-distance travel. And it works without massive government subsidies. Which is the best kind of travel there is. The kind where the people traveling pay for their travels. And not everyone else. As is the case with passenger rail.

Week in Review

Electric cars aren’t selling anywhere near enough to make them a profitable business. Because they just won’t do for you what gasoline will do for you. Let you carry lots of stuff over great distances. Because the electric car is so less of a car as a gasoline-powered car governments bribe manufacturers to build them. And people to buy them. Just so rich people can have these toys (see California Is Giving Tesla Another Huge Tax Break. Good Move. by Will Oremus posted 12/19/2013 on Slate).

This is going to drive the Tesla-haters crazy. The luxury electric-car maker is getting a huge new tax break from California, SFGate reports. The state will let it off the hook for sales and use taxes on some $415 million in new equipment it’s purchasing in order to expand production of the Model S at its Bay Area factory. That amounts to a $34.7 million tax break to produce more of a vehicle whose sticker price starts above $70,000…

So, in fact, it isn’t Tesla per se that’s getting special treatment from the state. It’s the clean-tech industry in general, which California is very keen to promote…

More broadly, whatever sense a tax on the purchase of manufacturing equipment might once have made for California, it’s patently counterproductive in the context of clean-tech startups in the 21st century. Add to that some of the highest income and sales taxes in the nation, and it’s no wonder California is worried about companies like Tesla picking up stakes and heading elsewhere. Businessweek notes that new manufacturing jobs in the state have risen less than 1 percent since 2010, compared with nearly 5 percent nationally. Gov. Jerry Brown has been chipping away at the tax already, and Tesla is just the latest example.

Nor is the deal likely to burden the state’s taxpayers. Tesla’s Model S is in huge demand, and the company has been scrambling since its launch to ramp up production.

No. The Model S is not in huge demand. Demand may be up for the car. But if the demand was ‘huge’ like every other popular car that sold well you wouldn’t need subsidies or tax breaks to build and sell them. For cars in high demand are often the cars with the greatest profit in their selling price. Because people want them so much that they are willing to pay these higher prices. SUVs and pickup trucks were these kinds of vehicles. And before gas prices spiked they were the lifeblood of manufacturers. Because people paid more for these than they would for the sedans at the time. Which is when the imports took over that segment.

People like SUVs and pickup trucks because they are big. They carry a lot of people. And a lot of stuff. Even pull campers and boats. The ideal vehicle for the family vacation. Something the electric car just sucks at. For any extra weight just sucks away charge time. Limiting your range. Which takes all the fun out of going on vacation. And makes it a little scary. For there is nothing worse than having a car that doesn’t move anymore in a strange place far from home.

But if you’re still convinced that tax breaks to big manufacturers are unfair and wrong, you might want to train your ire on a state a little further north, which just offered an all-time record $8.7 billion in tax breaks to a company that manufactures perhaps the least-green transportation technology of all. The worst part: Boeing might just move out anyway.

There is a bit of a difference between Tesla and Boeing. Boeing employs a great many more people than Tesla. And they’re all union workers ‘further north’. Hence part of the reason for the tax breaks. To help them compete with their high labor costs against the heavily subsidized Airbus. Also, Boeing leads U.S. exports. And is about the biggest component in U.S. GDP figures. So while tax breaks and subsidies are abhorrent at least Boeing gives us something for theirs. Unlike clean-tech industries. That receive huge government subsidies and tax breaks. Only to go bankrupt (Solyndra, Fisker, etc.) a short time later. Tesla is the exception to the rule. Because its founder, Elon Musk, is a billionaire who spends his own money. A lot of it. Unlike the other failed clean-tech start-ups.

Week in Review

People aren’t buying electric cars. Because they are too expensive. And because of their limited range. Governments (federal and states) are trying to encourage people to buy cars they don’t want by offering subsidies to both manufacturers and buyers. Which is getting some people to buy these cars. But not many. For even with those subsidies they’re still expensive. And still have limited range. Unlike these alternative cars (see These Diesels From Audi, BMW and Mercedes Cost Less To Own Than Your Gas-Powered Luxury Car by Hannah Elliott posted 12/19/2013 on Forbes).

Automakers have long lamented the American public’s reticence to embrace diesel technology as wholeheartedly as have Europeans…

But those who have adopted diesel love it. Audi head Scott Keogh routinely tells me his company sells out of each TDI model they make; Detlev von Platen at Porsche told me at the LA auto showst month that diesel technology will continue to play an “increasingly significant” role for its fleet, especially the best-selling Panamera.

The truth is that while there is a price premium (roughly $5,300 on average) associated with the initial purchase cost of diesel vehicles, they typically get 30% better gas mileage and flaunt superior torque numbers and reliability ratings. The automotive analysis firm Vincentric estimates that driving a diesel car will save $2,117 in fuel costs over one year assuming annual rate of 15,000 miles.

Note the one thing conspicuous by its absence. The word ‘subsidies’. For people will pay a premium for a diesel. Because there is value in a diesel. They have superior torque. Giving them greater pulling force than comparable sized gasoline-powered cars. Better reliability. And best of all they get a 30% better fuel mileage. Which gives them greater range than a gasoline-powered care with a comparable sized fuel tank. Giving them a greater range between fuel-ups than with a gasoline car. And a far, far, far, far, far greater range than an electric car. Giving the diesel an excellent value for the money. Something you don’t have to bribe people to buy with subsidies.

Week in Review

There are about 414 million people in the United States. And Obamacare is supposed to insure them all. But that’s not all. The Affordable Care Act was going to make health insurance less costly while covering more people. As well as providing more extensive coverage. Obamacare promised more for less. And if you liked your health insurance, your doctor and your medication you could keep them. It just sounded too good to be true. And, as it turned out, it was too good to be true (see Does the pre-existing condition program foretell broader problems for Obamacare? by PHILIP KLEIN posted 12/13/2013 on the Washington Examiner).

The program, known as the Pre-Existing Condition Insurance Plan, or PCIP, was a temporary measure within Obamacare meant to be a bridge to provide coverage to those with pre-existing conditions between the law’s 2010 passage and Jan. 1, 2014, when all plans will be required to offer coverage to those with pre-existing conditions…

What’s interesting about PCIP is that it ended up attracting much fewer Americans than expected while also costing more than expected. The reason was that those who did enroll ended up being those with extremely high medical costs — even by the standards of a program for those with pre-existing conditions.

By March 2013, HHS suspended enrollment in the program because it couldn’t afford to cover any new applicants.

As the New York Times reported in May, “The administration had predicted that up to 400,000 people would enroll in the program, created by the 2010 health care law. In fact, about 135,000 have enrolled, but the cost of their claims has far exceeded White House estimates, exhausting most of the $5 billion provided by Congress.”

The same story explained that HHS announced it “was cutting payments to doctors and hospitals after finding that cost overruns are threatening to use up the money available…”

But given the dismal enrollment numbers to date, it’s worth asking whether the exchanges could end up encountering similar problems to PCIP — only on a much bigger scale.

The plan that had only targeted 400,000 enrollees only got 135,000. About two-thirds short of their target. Why? Insurance that covers preexisting conditions is very expensive. Because it will pay a lot of claims. The money people pay in as premiums pays those claims. But the cost to cover these people is so great it took another $5 billion of taxpayer money. And even then the program ran out of money with only 135,000 signing up for this insurance. Showing the futility of buying insurance for a group with preexisting conditions.

Insurance by definition protects the financial assets of a policy holder from a possible loss. This is the key that makes insurance actually insurance. Not everyone that pays a premium for this protection will suffer a loss. So there is a surplus of premiums to pay for the few that do. The PCIP sells policies to a group of people who will all suffer a loss. So people aren’t paying a premium to protect themselves from a possible loss. They’re paying a premium to pay for a known loss. And everyone in the pool will be paying and submitting claims. So that the cost of insurance eventually equals the cost of health care per policy holder. Which makes the insurance redundant. And unnecessary. While only serving to increase actual costs by introducing a third party into the process.

This is why the PCIP needed the $5 billion in taxpayer subsidies. For without it people would not save any money by buying this insurance. As many haven’t. Even with the subsidies. The taxpayers paid about $37,000 per person in addition to the cost of the premium pool. Based on the number of months since the Affordable Care Act became law that’s about $842 per person per month in subsidies. Based on the horror stories of what the young and healthy have to pay for their Obamacare health insurance the premiums for the PCIP are probably greater than the subsidies. And it’s still not enough to cover their costs. Which is why they’re cutting people off and cutting payments to doctors and hospitals.

Which will happen for the rest of us. Once the enrollment numbers fall far short of their projections. As they are. And claims exceed premiums. As they will. Leaving them little choice but to cut costs. Raise premiums. Charge more for prescriptions. Increase wait times. And ration health care. Not what President Obama promised. Then again, he lied. PolitiFact called it the Lie of the Year. And because of the president’s lie people will have poorer quality health care. Who may succumb to their health problems as they wait those longer wait times. And can no longer afford the prescriptions that kept them healthy. All because President Obama lied.

The biggest improvement electric cars need is in the price. And the latest electric-car maker to make that improvement is Mitsubishi, which just slashed the price of its golf-cartlike iMiev by more than 20 percent, to $23,845. That’s a $6,130 price drop from $29,975. (Toyota recently lowered the price on the Prius Plug-In.)

In addition, Mitsubishi has added some standard features, such as front heated seats, CHAdeMO DC quick charge port, rear door speakers, leather steering wheel trim, passenger-side vanity mirror, fog lights, and aluminum wheels. While these standard features sweeten the deal, they do underscore just how barebones the car was previously.

The iMiev is still eligible for a $7,500 federal electric vehicle tax credit that brings the price down to $16,345, or less where other state and local credits are available. Even at that reduced price, it still a lot of money for a car that feels like little more than an enclosed golf cart. The appeal lies solely in providing attainable access into the world of pure-electric cars. At this price, it becomes more feasible as a second, occasional-use car. (Visit our alternative fuel hub for more on electric cars and hybrids…)

The i-MiEV feels tiny, tinny, and slow, with clumsy handling and a bumpy ride. And its short cruising range—barely 60 miles in our tests—keeps you on a tight leash. Charging times are long, spanning between 6 and 7 hours for a full charge using 240-voltage.

The Spartan interior is cramped and unappealing, with seating limited to four people. Finally, the car’s small size and slow responses make you feel vulnerable sharing the road with “real” cars.

So to own an electric car you have to pay a fortune to get little. You can’t drive further than 30 miles from your house. And you must play ‘Russian roulette’ when you share the road with real cars. As well as trucks. You should never drive around a down railroad crossing gate. Because in a car-train accident the car will always lose. Just as in an electric car-anything-else accident the electric car will always lose. Give me a big heavy 4-door sedan any day. It’s big, it takes up space and pollutes the air (a quote taken loosely from the 1980 movie Serial). But most of all it has space to survive in should you ever get into a non-train accident.

Any car that a manufacturer has to sell at a loss even with massive government subsidies is a car they shouldn’t be selling. And it’s especially a car the government shouldn’t be subsidizing. Especially when pretty much all of us prefer a car that’s big, takes up space and pollutes the air. And will let you drive further than 30 miles from home. While getting you home again. Even if you get stuck in rush hour traffic. In the middle of a blizzard. When it’s dark outside. Things that are not a problem when you have gasoline in the gas tank.

Week in Review

Fast food workers recently picketed to raise the minimum wage. To a ‘living’ wage. Saying they can’t afford to live without a ‘living’ wage. Even though they have been ‘living’ on the wages they have now. For however low their wages may be they have been able to put food on the table. In large part because of fast food. Because of those low wages. Making fast food a great value for the money. Of course if they raised everyone’s wages they would have to raise the price of their food to cover the higher labor cost. Making fast food less of a value for the money. Raising the prices such that some families will have no choice but to buy less. And go hungry more often.

It may not be the healthiest food out there. But it is the most affordable food out there. Allowing people to eat until they’re full and then some. But there are some who want to raise the cost of fast food. Such as those picketing minimum wage workers. And Canadians concerned about healthy diets (see Eating healthy adds $2,000 a year to family grocery bill by CBC News posted 12/5/2013 on CBC).

A family on a healthy diet can expect to pay $2,000 more a year for food than one having less nutritious meals, say researchers who recommend that the cost gap be closed…

“Our results indicate that lowering the price of healthier diet patterns — on average about $1.50/day more expensive — should be a goal of public health and policy efforts, and some studies suggest that this intervention can indeed reduce consumption of unhealthy foods,” Dariush Mozaffarian, the study’s senior author and a professor at the Harvard School of Public Health and his co-authors concluded.

Eating a healthier diet rich in fruits, vegetables, fish, and nuts would increase food costs for one person by about $550 a year, the researchers said. Diets rich in processed foods, meats and refined grains were considered unhealthy…

Previously, Mozaffarian’s team suggested taxing less healthy foods together with subsidies for healthier foods would balance price differences.

Does anyone see the failed logic in this taxing scheme? Poorer people tend to eat fast food and richer people tend to eat the healthier fruits, vegetables, fish, and nuts. So they are advocating raising the taxes on the poorer to make the food of the richer less costly. In hopes of getting the poorer to eat the food of the richer. But if they do just who will pay the tax on the bad food to subsidize the good food? On the one hand the poorest people will pay more for their food. On the other hand if the taxing scheme works the source of the subsidies will vanish. Either way this taxing scheme will force the poorer to pay more for their food. Or it will simply require higher taxes to replace the lost subsidies. Which is Canada’s problem in the first place.

Why are people struggling to buy food? Because of high taxes. And a weakened economy those higher taxes bring about. For adding a ‘bad food’ tax on fast food will surely reduce sales. As is the goal. But with fewer sales you need fewer people. So some people will lose their job.

If you want people to eat healthier just let them get a decent job so they can afford to. Cut taxes and regulations to spur economic activity. Let the demand for workers increase. Which will increase wages. And make it easier for everyone to put healthier fruits, vegetables, fish, and nuts on the table.

Britain’s green ambitions have been dealt a blow as a big six energy company has pulled the plug on one of the world’s largest offshore windfarms, with the political storm enveloping the industry threatening the multibillion-pound investments needed to meet emissions targets and head off a looming capacity crunch.

Weeks after warning that the government was treating environmental subsidies as a “political football”, the German-owned RWE npower is pulling out of the £4bn Atlantic Array project in the Bristol Channel because the economics do not stack up.

The move comes as figures show that energy firms reaped a 77% increase in profits per customer last year, due to bill increases that the big six say are partly due to government green levies…

The Renewable Energy Association (REA), which lobbies for more low-carbon power, said government infighting over subsidies was causing deep uncertainty in the industry…

“We need assurances from George Osborne in the autumn statement about where we stand,” said a spokesman for the REA. “Nick Clegg says one thing about the green levies, Michael Fallon [the energy minister] another…”

RWE indicated that the government might have to raise green subsidies – and thus increase bills or the burden on the taxpayer – after admitting that technical difficulties had pushed the price up so far that it could not be justified under the current subsidy regime.

But RWE has already pulled out of a £350m nuclear-power project, is selling its DEA North Sea oil business and last week disposed of part of its UK gas and electricity supply arm. Developers have been warning for some time that they would need more subsidies from the government if ministers were to realise low-carbon energy targets.

RWE was in partnership to build that nuclear project. Which cost in total £696m. Or 17% of the cost of the £4bn Atlantic Array project in the Bristol Channel. Which they say will power one million homes. Of course, that would be only when the wind is blowing. But not blowing too fast. For there is a small window for safe wind speeds these turbines can generate power at. Giving them a low capacity factor (the amount of power they could produce over a period of time at full nameplate capacity and the actual power they produced over that period). About 30% in Britain. Whereas nuclear power is about 90%. Which is why we use it for baseload power. Because it’s always there. Even when the wind is blowing too slow. Or too fast. So that Atlantic Array wasn’t going to provide reliable power for a million homes. In fact, on a calm day it will provide no power to any home. Which begs the question why spend £4bn for unreliable power when you can spend £696m for reliable power?

Worse, wind power requires government subsidies. So much that companies won’t build wind farms unless they get government subsidies. Something you don’t need to build a nuclear power plant. And to rub salt in an open wound those subsidies are paid for with levies on the family utility bill. Or higher taxes. Forcing these families to get by on less. While these green energy firms are seeing rising profits. Because of the money the government takes from the households and gives to the green energy firms in the form of subsidies. Which begs another question. Why charge the British people so much more for clean energy when they can get it for far less from nuclear power? At 17% of the cost for the Atlantic Array project?

When it comes down to it renewable energy is crony capitalism at its worst. Huge transfers of money from the private sector to the public sector. Where they turn around and give to their friends in green energy companies in the form of lucrative contracts and fat subsidies. After taking some off the top for their expenses, of course. If it wasn’t they’d be building less costly and more reliable nuclear power plants to be green. Instead of building these green elephants all over the place.